Saturday, December 20, 2014

PROTECTING DOWNSIDE SIGNIFICANTLY AND PROVIDING UPSIDE TOO...........

                                 


ABSOLUTE
CAGR

Scheme Name
1 Month
3 Months
6 Months
9 Months
1 Year
3 Years
5 Years

Edelweiss Absolute Return Fund(G)
-0.17%
3.12%
13.61%
28.61%
31.12%
16.19%
11.78%

CNX Nifty Index
-2.03%
2.21%
8.98%
26.37%
33.05%
20.07%
10.30%

Participation vs. Nifty
8%
141%
152%
108%
94%
81%
114%

           


Dear investor,

Markets were volatile, are volatile and will continue to be volatile. It has always been my endeavour to ensure that not only upside is captured but downside is protected. Now, this works great when you have a Balanced Fund but here too there are funds which fail to do so.

One fund which has been my all time favourite and has consistently done this amazing job of Protecting Downside and capturing the Upside has been the EDELWEISS ABSOLUTE RETURN FUND.
The Fund, though an MIP, has consistently beaten the Nifty Index over all kinds of markets and since its launch. It once again proved its worth during this weeks fall on 8th and 9th of December. The Edelweiss Absolute Return Fund has shown very low volatility and has been very very consistent with its return.


































152%
108%
94%
81%
114%

Also please read
 http://goodfundsadvisor.blogspot.in/2013/12/edelweiss-prepaid-sip-unconventional.html

Markets have been in bullish mood for the past 2-3 quarters and the bullishness is expected to continue. But the Falls too will be fast and sharp as witness last week.
This is where funds like EDELWEISS ABSOLUTE RETURN FUND give your portfolio the cushion of Equity exposure with Downside Protection.
And, by the way, the Fund is treated as an EQUITY FUND for Income Tax purposes.

 For me, this fund is a MUST HAVE fund in any Portfolio. Do consult your Financial Advisor before investing.

Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Tuesday, December 9, 2014

COST OF DELAY

Friends,
My article on COST OF DELAY has been published in www.bankbazaar.com
The link to the article is http://blog.bankbazaar.com/the-cost-of-delay/
 http://blog.bankbazaar.com/the-cost-of-delay/

http:/http://blog.bankbazaar.com/the-cost-of-delay/
I have given details of the pitfalls of delaying your investments
Monthly Investment …
20,000








Investment Horizon in years
30








Expectate rate of returns p.a.
15.00% End Value (payment at beginning of the month)







Delay in starting SIP from today
12


Enter in Months …










Your End Investment Value, if you had started MF SIP today …







11,26,35,408







Your End Investment Value, if you delay you delay your investments…







9,77,18,543













The cost of delay is … 1,49,16,865














If you delay your investment by 12 month/s, you stand to loose Rs. 14916865/-




in the end value of your investment …




The article contains in detail about why you should avoid delaying your investments.
Please do post your valuble comments


Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Saturday, November 29, 2014

REVIEW OF SUNDARAM WORLD BRAND FUND


 ASPIRATIONAL!!!


Sundaram Mutual Fund has come out with a very interesting NFO Sundaram World Brand Fund. Read on.
THE ISSUE DETAILS
The Fund has 2 options, option 1 with a 3 years Close ended and Option 2 with a 5 year Closed Ended.
Sundaram World Brand Fund aims to invest 65% to 100% of Assets under Management in Equities listed overseas. The Fund will invest in Top Global Brands across Countries.
The NFO is now open and closes on December 2. It will invest in equities of world's strong brands. They will be advised by Sundaram AMC, Singapore in picking up the portfolio.
The Fund will be benchmarked against MSCI ACWI Index.
The Fund proposes to Declare Dividends as and when the Funds NAV crosses between Rs.12 to Rs.16.
THE REASONING
Since almost Top Global Brands are retail oriented, the Fund will be a kind of Global Retail Proxy Investment.
Sundaram claims there have been studies indicating that companies having a strong brand value or brand pull have consistently delivered better returns. In fact, their Back Testing has shown that if you held a portfolio of global brands for a period of 5 years, in 95% of all occasions, you made a positive return irrespective of whether you got in during a bull or a bear market. And also the Fund would have beaten Nifty by a handsome margin of 7%.
Sundaram AMC claims that inspite of high valuations previous research has proved that Companies with High Brand Recognition tend to do well in long periods.
WHY YOU SHOULD INVEST IN THIS FUND
Currently exposure to Top Global brands like Apple, Nestle, Citi, Sony is currently unavailable to Indian Investors and this Fund gives an opportunity to own these aspirational brands.
Indian Markets are at slightly stretched valuations.
Sundaram World Brand Fund is comparatively less risky than other International funds as this fund does not have a Region Specific or Currency specific risk.
Since the fund invests in stocks across a wide spectrum of sectors, geography, currency, the fund should do well in all kinds of markets - be it bull or bear market.
WHY NOT TO INVEST IN THIS FUND
This fund will be treated as Debt fund and will be taxed accordingly. Since the fund is Close Ended, there is a risk of Market timing and also you will not be able to average your investment
Though the Fund will invest in companies that are spread across geographies and Currency risk is largely mitigated. Still the Rupee is expected to appreciate strongly going forward which may limit the gains made by the Fund.
RECOMMENDATION
Investors are always advised to have a portion of their money in International funds. If your portfolio is short of international equity exposure, then yes, you can go ahead with this fund. But, if you are new to Investments, then you are better off sticking to the Boring Diversified Indian Equity Funds.
If you still feel that you need an international equity exposure, I would recommend you seriously look at DSP BLACKROCK GLOBAL ALLOCATION FUND and L&T GLOBAL REAL ASSETS FUND.
Since, Sundaram is intending another 3-4 series in the same pattern of portfolio in the coming quarters, you can stagger your investments too by investing a portion of funds in this fund and the balance in the coming series.

The review was published in https://www.advisorkhoj.com/news/Mutual-Fund/SUNDARAM-WORLD-BRAND-FUND-NFO:-ASPIRATIONAL#.VHl-WMnPvmw


Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Tuesday, August 26, 2014

SNOWMAN LOGISTS IPO - SUBSCRIBE................HERE'S WHY..................









Bangalore based Snowman Logistics Ltd, the Cold Storage Arm of Gateway Distriparks has come out with a public issue with a price band of Rs44-47 targetting to raise between Rs.185-Rs.197 crores.
The Issue opens on 26th August and closes on 28th August.
Minimum shares to be applied is 300 shares and minimum investment should be Rs.13200/-.

COMPANY BACKGROUND :
The Company is present across 14 locations and operates 23 Temperature Controlled Warehouses.
The Company is proposing to set up facilities in another 6 cities. Snowman operates 370 reefer vehicles for primary and secondary transportation as of 31st March 2014.


The Company is promoted by Gateway Distriparks, which is a big player in Logistics Sector with its operations in Container Freight Stations at Major Indian Ports. Gateway Distriparks present holding of 54% will get reduced to 40% post the IPO.
The Performance of the company is mixed. While the CAGR is 35% in terms of revenue, the EPS is a pathetic  1.7 due to low ROE.

Anchor investors subscribed to 9.45 million shares at Rs.47 each, the upper end of the price band of Rs.44-47 set for its initial public offer (IPO) that opens on Tuesday. These anchor investors include Faering Capital India Evolving Fund which subscribed to 3,492,000 shares, ICICI Prudential Growth Fund Series 2 which opted for 2,127,900 shares, ICICI Prudential Value Fund Series 4 which subscribed for 851,100 shares, IDFC Sterling Equity Fund which subscribed for 2,659,800 shares and IDFC infrastructure Fund which opted for 319,200 shares.



POSITIVES :

1.     Crisil has rated the IPO at 4/5 which indicates Above Average Fundamentals
2.     Snowman is growing at a CAGR of 79%
3.     Mitsubishi Corporation holds 12.57% state
4.     High Entry barrier
5.     Reputed Promoters


NEGATIVES :
1.     50% of the Revenues is contributed by 20 customers leading to concentration of clients which may hurt profitability.
2.     Heavily dependent on Third party Services Providers
3.     Low Return on Equity is denting profitability


WHAT OTHERS EXPERTS SAY :

Hindu Businessline says :
“For an investor who can stomach high risk, the initial public offer (IPO) of Snowman Logistics presents a good opportunity.

MyInvestmentIdeas  says :

Hem Securities “The issue looks attractive with strong growth prospects in Cold Chain Industry”
Sharekhan “Snowman Logistics will benefit from the experience of its promoters. One can subscribe to the IPO”
Ajcon Global says : “Tax benefits available to Snowman Logistics Ltd under Sec35Ad will help the company”
SBI Cap Securities says :” We expect the growth to unfold once the capex cycle for the company is over. We recommend a SUBSCRIBE rating with a long term perspective considering the EPS growth opportunity awaiting the company”
ICICI direct says “Given the possibility of a shift from the unorganised to organised segment, we believe, earnings CAGR of 21% over FY14-17E make valuations attractive for SLL. Consequently, we recommend SUBSCRIBE to the IPO”
K.R.Choskey says “Considering leadership, unique business model and growing industry we recommend “Subscribe” to SNOWMAN LOGISTICS IPO”
GEPL Capital says “The stock enjoys premium in terms of valuation as it is the only player in the organized cold storage industry with huge business potential & its pan India presence. Hence we recommend to SUBSCRIBE to the IPO.
Dilip Davda says “Although this IPO looks pricey, considering the performance parameters and this being the first IPO from new specialized segment; it is set to reward investors in medium to long term. It is said to be another Just Dial / Wonderla in the offing.
Capital Mind says “The valuation is reasonable. Prudent to invest a small amount now”

Rakesh-Jhunjhunwala.in has boldly said "Missed Gati & TCI?....You can make up with Snowman Logistics IPO"


SRIKANTH SHANKAR MATRUBAI recommends :
The Company is a leader in the category with virtually NIL competition.  
The Narendra Modi Govt’s infra push too will help the business of Snowman.
The Markets too are in bullish mode. A definite Pop-up on Listing is a given.
Lack of peer listed players will force the Institutions to take exposure in Snowman as part of Industry exposure resulting in good support for the shares.
The retail portion is very small at just 42 lakh shares. I expect a strong listing gains.
SUBSCRIBE





Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Monday, August 4, 2014

INFLATION - THE SILENT KILLER



 Inflation is a Silent Killer.



https://i.ytimg.com/vi/E0QORBzgpQw/mqdefault.jpg
Before you know it, Inflation has reduced the purchasing power of your money.
Watch the amazing video to know more....


It is imperative that you invest in those assets which give you returns above the Inflation.


https://www.youtube.com/watch?v=E0QORBzgpQw&list=UUYE5Xk94ocYsDf-QW-LOaDg Also visit http://http://goodinsuranceadvisor.blogspot.in/



Also visit http:/http://goodinsuranceadvisor.blogspot.in/

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